As someone mentioned -- you should be converting to the native format of your post processing software. If you use Photoshop the native formats would be DNG or PSD or 16-bit TIFF though I am not sure if S7raw supports the first two of these three formats.

I see very little sense in converting from raw to JPEG directly if you plan to do any post processing whatsoever (and if you're shooting raw you most likely want to do PP). 8-bit JPEGs are very likely to show artifacts and/or banding/posterization even with a reasonable amount of post processing.

Most people shoot raw to have the maximum control over the output. This maximum control can be effectively exercised by doing
only raw-specific processing
(namely exposure and white balance) in s7raw or any other raw processor of your choice and then by outputting into a 16bits per channel compressionless format and doing the rest of the post processing (my favorite is TIFF) in that format using a software that can handle 16bit/channel graphic.

Only when I were to output for the web would I convert to a 8-bit JPEG format wih sRGB color space.

There are a handful of people who would argue with this approach (names of self-proclaimed experts like Ken Rockwell come to mind) but they are doomed to spend the rest of their lives with artifacts, blown highlights and clipped shadows ....